BBB National Programs Archive
NAD Finds NAIMA Violated NAD Procedures that Prohibit Use of Decisions for Promotional Purposes
New York, NY – May 2, 2017 – The National Advertising Division has determined that the North American Insulation Manufacturers’ Association (NAIMA) violated the procedures that govern the advertising industry’s system of self-regulation by directly promoting the outcome of an advertising challenge case decided by NAD.
Self-regulation is a voluntary process. NAD procedures make clear that parties to an NAD case are prohibited from using NAD decisions for promotional purposes. Participating companies agree at the outset to abide by that rule and parties are reminded of the prohibition when a case is closed. The prohibition was put in place to encourage participation and to better assure NAD decisions are not used by parties either to promote their own products or implicitly criticize competitors.
In the underlying case, NAIMA – which represents makers of fiberglass insulation products – challenged certain advertising claims made by Applegate Insulation, the maker of competing cellulose insulation products.
Subsequently, a public relations company working on behalf of NAIMA commissioned articles in three separate publications that used the NAD decision to promote fiberglass insulation.
Effective self-regulation requires that participants adhere to both the letter and the spirit of the self-regulatory system.
Note: A recommendation by NAD to modify or discontinue a claim is not a finding of wrongdoing and an advertiser’s voluntary discontinuance or modification of claims should not be construed as an admission of impropriety. It is the policy of NAD not to endorse any company, product, or service. Decisions finding that advertising claims have been substantiated should not be construed as endorsements.